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Centrica Boss Warns Of Price Hikes

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The chairman of British Gas owner Centrica has warned households to brace themselves for further steep increases in gas and electricity bills, it has been reported.

Sir Roger Carr told The Sunday Telegraph that the wholesale cost of power has risen by more than 20% in recent weeks, making price hikes across the industry inevitable.

Last week Scottish Power, which serves 2.4 million households, announced that gas and electricity prices would rise by 19% and 10% respectively, adding £173 to the average annual dual fuel bill from August 1.

The move from Scottish Power is expected to herald a fresh wave of energy bill rises, after all the "big six" suppliers put their prices up over the winter.

Sir Roger told the newspaper: "Moving wholesale prices have been very material, well over 20%, in recent months.

"In those circumstances, it is just a commercial fact that those things convert into price increases.

"It's high. Nobody likes higher prices but it's passing on costs which nobody can avoid."

Sir Roger, who is also president of the Confederation of British Industry, refused to comment on future prices at Centrica.

But Centrica, which has around 16 million energy accounts, last month said the price paid by households has yet to reflect fresh wholesale price hikes, hinting that further rises were on the way.

The Bank of England has also warned it expects household energy bills to rise by 15% this year, heaping more misery on cash-strapped consumers.

That idea of the big old house looks to be a poor one when you have to heat it.

Lot's of oldies going to get sick this winter, and from here on.

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I heard on TV that the Scotish power price increase was all on the first lot of energy you use.

It will be interesting to see if that happens here as well.

Once more the people get shafted, stable purchasing power you've got love the central bankers for aiming to maintain it....

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Yes, I am increasingly of a belief that, between demographics and heating costs, that bigger houses are just going to be unaffordable from a heating point of view.

Fewer people are having large families - or can afford to have large families, but the heating bills could be enough to finish the Brits off.

After a 1,000 years it won't be enemies from without that gets rid of the Brits, it will be a mix of housing and fuel costs.

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Good, part of me hopes the cost of living goes through the roof. I rent and have just a few inexpensive luxuries but I have absolutely everything I really need. I earn about the average full time salary and save 50% of my net income. So let them keep cranking up petrol, utilities, food, car insurance etc. The credit addicts living hand to mouth will hit the wall a long time before I will, and when they do this crisis can move one step closer to being resolved.

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Good, part of me hopes the cost of living goes through the roof. I rent and have just a few inexpensive luxuries but I have absolutely everything I really need. I earn about the average full time salary and save 50% of my net income. So let them keep cranking up petrol, utilities, food, car insurance etc. The credit addicts living hand to mouth will hit the wall a long time before I will, and when they do this crisis can move one step closer to being resolved.

So you've fixed your rent then for the next 15 years?

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British gas have a price fix till 2012, set at 19% above current prices. Might be worth it?

For Centrica, they claim it's cheaper for them to bring gas from Qatar, Norway and such, and store in the mature fields off of Blackpool and Humberside than it is to produce from within UK territory due to taxes.

That's nuts.

Plus a lot of this is scaremongering due to Osbourne's tax sabre rattles.

But that 19% gamble seems excessive, but probably a safe bet when you consider how bad the energy situation is within the UK.

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So you've fixed your rent then for the next 15 years?

I wish any landlord who thinks he can raise his rents at the same time as food and energy prices are rising and wages are stagnant the very best of British.

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Yes, I am increasingly of a belief that, between demographics and heating costs, that bigger houses are just going to be unaffordable from a heating point of view.

Fewer people are having large families - or can afford to have large families, but the heating bills could be enough to finish the Brits off.

After a 1,000 years it won't be enemies from without that gets rid of the Brits, it will be a mix of housing and fuel costs.

We will go back to two in a bed (like me and my younger brother growing up) and gettin peed on every night. Happy days.

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There was a fantastic piece in The Daily Mail last week that 20% of your energy bill is due to the different subsidies and taxes energy companies are forced to pay by Europe and The Government.

In short on your gas bill you pay the additional that is not itemised:

1. Renewables Obligation - Energy companies forced to buy a % of their energy from "renewables", trouble is it's 3-5 times more expensive.

2. European Emission Trading Scheme - Energy permits that used to be free but will be charged from early next year.

3. Carbon Emissions Reduction Commitment - Requires energy companies to invest in expensive carbon reducing technologies.

4. Climate Change Levy - For corporate customers but you can be sure this will be passed onto you.

5. Carbon Floor Price - a C02 tax designed to penalise the use of fossil fuels forcing energy companies to go for renewables.

6. Feed-in tariffs - This is not actually on your gas bill but is paid via general taxation so you still pay for it anyway. It basically guarantees an annual return of at least 10% to companies investing in crackpot renewable projects, paid for you, possibly by withdrawing some of your savings on that sh*tty 0.01% return bank account.

Ever feel like you're being shafted? Well now you know why.

Green Stealth Taxes

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And yet in spite of inflation-defying hikes in staple cost-of-living items in recent months combined with salaries falling in real terms, sales of foreign holidays are up! Once again, we seem to be defying economic gravity and maintaining discretionary spending in the face of real-terms income squeezing. What is happening here - people putting it all on credit cards? If so, credit availability clearly hasn't tightened very much in response to the recession.

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British gas have a price fix till 2012, set at 19% above current prices. Might be worth it?

This is one of those little things that really F's me off. Paying your gas bill has now become an invitation to hedge. WTF. Where does this advantage the average consumer?

Forget OFWAT or whatever it's called, the FSA should be regulating this fiasco. We have been sold down the river and there's no way out.

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The increases over the last decade - since privatisation (more competition) have been staggering. Nothing approaching inflation increases but regularly these massive hikes. Something will have to give.

The UK's strategic approach to energy and the best interests of its citizens has bordered on treasonous.

I read today Chris Hulne's advice (he of green energy subsidy and thus inflated prices) is to shop around; funny that the only competition in the energy market is who is best at increasing prices.

The UK is energy market is a joke.

Edited by tinker

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British gas have a price fix till 2012, set at 19% above current prices. Might be worth it?

Scottish Power have a capped price on the market untill june 2013 much cheaper than 19% above BG standard, however there will be other cheaper caps and fixes out there also. Thats an extra year of guarenteed prices with the (unlikely) possibilty the rates maye fall. They have not added all the cost into the first tier of energy useage as someone else has stated, the bottom rate of gas in the Scottish power supply area has jumped from 2.9p exc VAT to 3.5p exc VAT. Expect other rate rises very soon from other suppliers...

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And yet in spite of inflation-defying hikes in staple cost-of-living items in recent months combined with salaries falling in real terms, sales of foreign holidays are up! Once again, we seem to be defying economic gravity and maintaining discretionary spending in the face of real-terms income squeezing. What is happening here - people putting it all on credit cards? If so, credit availability clearly hasn't tightened very much in response to the recession.

Probably what's happening is they are all on standard variable rate mortgages and have never had it so good

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But that 19% gamble seems excessive, but probably a safe bet when you consider how bad the energy situation is within the UK.

Don't forget they have to factor in the feed in tariffs for solar as well.. that will probably be starting to ratchet up now, plus the subsidies for low energy lightbulbs if those are still going on.

Lots of hidden taxes imposed on your energy bill.. not just resale energy costs.

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youve already had price increase but you didnt know it, a few months ago the ychanged the way they calculate your bill before it was120 kwh then you'd be moved onto teh cheaper rate thats has now gone up to 180 kwh an hour before you pay the cheaper rate.

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The increases over the last decade - since privatisation (more competition) have been staggering. Nothing approaching inflation increases but regularly these massive hikes. Something will have to give.

The UK's strategic approach to energy and the est interests of its citizens has borders on treasonous.

I read today Chris Hulne's advice (he of green energy subsidy and thus inflated prices) is to shop around; funny that the only competition in the energy market is who is best at increasing prices.

The UK is energy market is a joke.

+1

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The increases over the last decade - since privatisation (more competition) have been staggering. Nothing approaching inflation increases but regularly these massive hikes. Something will have to give.

The UK's strategic approach to energy and the est interests of its citizens has borders on treasonous.

I read today Chris Hulne's advice (he of green energy subsidy and thus inflated prices) is to shop around; funny that the only competition in the energy market is who is best at increasing prices.

The UK is energy market is a joke.

Absolutely!

My mum has just told me that after the increase, 25% of her income will now go on fuel costs! This is a f*%#ing disgrace...

Privatization has been a complete and utter disaster for the majority of people in this country of ours.

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+1

I hate it when somebody quotes me, and then I notice my typos. :lol::lol::lol:

See edit.

Oh the shame!

Edited by tinker

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Absolutely!

My mum has just told me that after the increase, 25% of her income will now go on fuel costs! This is a f*%#ing disgrace...

Privatization has been a complete and utter disaster for the majority of people in this country of ours.

do you understand what 'nothing approaching inflation increases' means?

are you aware of global energy prices?

or is that all fatcher's fault too?

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The increases over the last decade - since privatisation (more competition) have been staggering. Nothing approaching inflation increases but regularly these massive hikes. Something will have to give.

The UK's strategic approach to energy and the best interests of its citizens has bordered on treasonous.

I read today Chris Hulne's advice (he of green energy subsidy and thus inflated prices) is to shop around; funny that the only competition in the energy market is who is best at increasing prices.

The UK is energy market is a joke.

the previous govt refused to grasp the nettle that was 'government consent for new power stations' - no way around it, we need them, fossil fuel and nuclear, either that or we need to use less energy, the result was a fudge, they kicked the can down the road

it is a little unclear whether the general concensus is to blame fatcher or the greenies, maybe fatcher IS a greenie? who knows?

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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